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Urban Logistics REIT 

What it does: Urban Logistics REIT owns and operates more than 100 warehouses single-occupant designed for ‘last mile’ delivery.

By Royston Wild. Recent panic selling of UK assets has pushed prices of many top property stocks sharply lower. As a result, I believe Urban Logistics REIT (LSE: SHED) is an attractive buy for investors this November. 

At current prices, the FTSE 250 firm’s dividend yields for the next two financial years sit at an enormous 6.1% and 6.5% respectively. 

Property shares often provide investors with solid protection against high inflation. This is because they are usually able to raise rents in order to eliminate (or at least offset) increasing cost pressures.  

With UK inflation at 40-year highs and tipped to go higher, Urban Logistics could therefore be an effective wealth preserver. 

I wouldn’t just buy this REIT for the here and now, however. I’m expecting earnings (and consequently dividends) to grow strongly over the next decade as e-commerce steadily expands. 

Demand for the warehouses and distribution properties it owns appear on course to improve rapidly. And rents will likely stride higher given the weak construction outlook for this particular sector.

Royston Wild does not own shares in Urban Logistics REIT. 

LondonMetric Property

What it does: LondonMetric property is an urban logistics real estate manager with 17 million square feet in its asset portfolio.

By Zaven Boyrazian. LondonMetric Property (LSE:LMP) has been on a roll lately. Despite what the 33% drop in share price would suggest, the urban logistics property manager is seemingly thriving. In fact, as of October this year, occupancy stands at an impressive 99%, with an average lease term of 12 years among its tenants.

Even with e-commerce slowing on the back of reduced consumer spending, demand for urban logistics centres continues to grow – a trend management seems to be capitalising on successfully. As such, the stock offers an impressive 5.5% dividend yield.

With interest rates rising, real estate investment trusts like Londonmetric Property have been hit hard due to their high debt balances. But a closer look at the company’s loans reveals that 80% of its debts are either hedged or on a fixed rate.

In other words, the threat of rising interest rates to this business may not be as disastrous as many think. And that’s why I believe a buying opportunity in this stock has emerged for me.

Zaven Boyrazian does not own shares in LondonMetric Property.

Diversified Energy Company

What it does: Diversified Energy Company owns and operates around 67,000 mature natural gas and oil wells in the US.

By Charlie Carman. Diversified Energy Company (LSE: DEC) shares have climbed nearly 17% this year. The FTSE 250 stock offers a handsome 11% dividend yield.

A key reason I’m bullish is President Biden’s drive for American energy independence. As a domestic producer, the firm should benefit from White House policies designed to combat spiralling commodity prices fuelled by the Russo-Ukrainian war and OPEC+ production cuts.

In addition, I’m encouraged by the company’s recent share buyback scheme to capitalise on sterling’s weakness against the dollar.

Admittedly, DEC posted a $935m net loss in H1 2022, which concerns me. I’m also sceptical about the accounting accuracy of decommissioning liabilities, which assumes its old wells will survive until 2095.

Nonetheless, the business model looks healthy overall. In particular, I like the robust 22% free cash flow yield that underpins DEC’s market-leading dividend. With supportive government policies acting as a tailwind for the foreseeable future, I’d buy this stock in November.

Charlie Carman does not have a position in Diversified Energy Company. 

DS Smith

What it does: DS Smith provides sustainable packaging solutions, paper products and recycling services worldwide.

By Kevin Godbold: Despite all the gloomy economic news around, DS Smith (LSE: SMDS) issued an upbeat trading statement on 10 October.

The company reported “good and consistent” trading. And the directors said overall performance for the year will likely be ahead of their previous expectations. DS Smith is one of many businesses that have been confounding the market’s expectations recently.

I like the company’s robust cash flow record — ideal for supporting its progressive dividend policy. And after prudently skipping a few dividends in the depth of the pandemic, DS Smith has jumped straight back in to the groove of pushing the shareholder payment a little higher each year.

There’s competition in the sector. But DS Smith is well established. And I think the industry has a tailwind. Meanwhile, with the share price near 290p, the forward-looking yield is running at around 6%. I think that’s attractive.

Kevin Godbold does not own shares in DS Smith.

Imperial Brands

What it does: Imperial Brands is a multinational tobacco company and is the world’s fourth-largest international cigarette company measured by market share.

By John Choong. The Imperial Brands (LSE: IMB) share price has remained rather robust this year, outperforming its parent index by quite some margin. Not to mention, its excellent dividend yield of 7% paired with a solid history of payment makes it a lucrative income stock to buy for my portfolio.

Luxury goods tend to benefit during times of inflation due to their inelastic demand. Most of Imperial’s products are catered to a niche market, and has been evident in the company’s last couple of results. Although growth hasn’t been stellar, it’s certainly been robust, while dividend payments continue to increase. The company also recently announced a share buyback programme, which should bring more value to shareholders.

With its next ex-dividend date estimated to be later this month, I’m planning on starting a position and capitalising on the ability to generate passive income in the current inflationary environment.

John Choong has no position in Imperial Brands.

Direct Line

What it does: Direct Line provides motor and general insurance in the UK.

By Christopher Ruane. Insurance tends not to be a very exciting business. In fact, it is often rather boring. As an investor, though, that is precisely why I like it. Demand is relatively stable, proven operators have enough experience to price risks at the right level, and the business model does not look like it will stop working any time soon.

Direct Line (LSE: DLG) has those characteristics. It avoids the more exotic corners of the insurance market and is highly profitable.

Right now, Direct Line shares yield 11.4%. That is certainly attractive to me, which is why I own some. It is also high compared to most FTSE 250 peers, though. Does that suggest a cut is coming? Rising vehicle costs pose a threat to profit margins and that could continue in coming years. But the company’s business model, iconic brand and large dividend make it appealing to me.

Christopher Ruane owns shares in Direct Line.

Tritax Big Box

What it does: Tritax Big Box REIT owns, manages and develops logistics real estate in the UK.

By Paul Summers: My pick for November is FTSE 250-listed real estate investment trust (REIT) Tritax Big Box (LSE: BBOX). Having tumbled over 40% in value in 2022, its shares yield a very respectable 4.9%. 

Now, I could shoot for more income elsewhere. However, I’d rather back Tritax for two reasons. First, it’s a relatively low-risk way of tapping into the ongoing growth of e-commerce (the company provides warehouses for some of the biggest retailers around).

Second, the fact that REITs are able to raise rents to cover rising costs without too much fuss makes Tritax a great option for battling inflation. 

Having coveted the stock for so long but been put off by the price tag, now could be an excellent time for me to begin building a position by buying its shares in November. 

Paul Summers has no position in Tritax Big Box.

Aviva 8 ⅜% PF 8 ⅜ CUM IRRD PRF #1

What it does: Aviva is a multiline insurance company. Its preferred stock pays a fixed dividend of 8.375p per year.

By Stephen Wright. My best British income stock for November is Aviva 8 ⅜% PF 8 ⅜ CUM IRRD PRF #1 (LSE:AV.B) Catchy name, but what is it?

In short, it’s Aviva’s preferred stock. Unlike the common equity, the stock pays a fixed dividend of 8.375p per year. 

That dividend has to be paid by management before any dividends get paid to common shareholders. And if it doesn’t get paid in a particular year, it rolls over and all of the outstanding dividends have to be paid to preferred shareholders before any are paid to holders of common stock.

The shares can’t be bought back by the company outside of an Extraordinary General Meeting. So I expect to keep receiving the dividends from these for some time.

In a turbulent market, I’m looking for something relatively predictable. That’s why I’ve settled on this as my choice.

Stephen Wright owns shares in Aviva 8 ⅜ PF 8 ⅜ CUM IRRD PRF #1.

M&G

What it does: M&G is a savings and investment management company, managing shares, real estate and other assets.

By Alan Oscroft. Like others in the investment management business, M&G (LSE: MNG) has fallen out of favour among investors in the current economic crisis.

The share price slumped when inflation started escalating a few months ago. After a modest October recovery, though, M&G is only around 10% down over the past 12 months.

That still leaves the forecast dividend on a hefty 10.5% yield. It’s risky relying on a dividend forecast. But M&G is currently engaged in a share buyback programme, which suggests it has the cash available.

The incoming chief executive and the chairman both bought M&G shares in October, which is also encouraging.

In the first half, its Wholesale Asset Management business achieved net client inflows for the first time since 2018. The second half could prove tougher, and that’s where the short-term risk lies.

But I’ll be considering M&G as the next stock for me to buy as a long-term dividend investment.

Alan Oscroft does not own M&G shares.

BlackRock World Mining Trust

What it does: BlackRock World Mining Trust in an investment trust that runs a diversified portfolio of global mining stocks.

By Ben McPoland. The decarbonisation of the global economy is going to take many decades. And this transition is going to need a lot of raw materials. Whether it’s iron ore to make wind turbines or lithium for the batteries of electric vehicles, decarbonisation is a massive tailwind for mining companies. The BlackRock World Mining Trust (LSE: BRWM) is perfectly placed to capture this demand, I believe, as it has positions in most of the companies mining and selling these vital raw materials.

Some of the trust’s largest holdings include BHP Group, Glencore, and Rio Tinto. It has a dividend yield of 7%, and the payouts have increased substantially over recent years

It should be noted that mining shares can experience much more volatility when compared to other investments. However, I’d be inclined to see dips in the trust’s stock price as opportunities to buy more for my holdings. I intend to start a position myself in November.

Ben McPoland has no position in BlackRock World Mining Trust.

Here are two I’d be quite happy to buy now and hold for the next 10 years.

Top dividend stock

I’ve been wanting to buy shares in Tritax Big Box (LSE: BBOX) for a while now. Unfortunately, they always seemed too expensive for me to pull the trigger with confidence. Thankfully, that situation has now changed.

Tritax is a real estate investment trust (REIT). It owns, develops, and manages logistics buildings (like warehouses) for customers such as Tesco, Next, and Amazon on long leases. That’s generally good news for income seekers, even if no dividend stream can be truly guaranteed. The Covid-19 pandemic served as a reminder of that.

Long-term growth

Of course, the relative stability of Tritax’s business model doesn’t mean that all investors will stick around in a crisis. As evidence of this, shares have almost halved in value in 2022 alone.

That said, this has succeeded in bringing the valuation down to a more palatable level. Shares now trade on an appealingly low price-to-book value relative to the rest of the market.

Naturally, it’s hard to say when things might begin to recover. With a raft of economic issues in the UK, Tritax could be dragged lower regardless of management doing all the right things.

However, I’m fine with gradual capital gains. I also can’t see demand for the sort of assets Tritax owns going out of fashion anytime soon. Consumers may be tightening their belts temporarily but the growth of online shopping will surely continue.

Perhaps most importantly, a 5.3% dividend yield is sufficiently chunky, even if it’s clearly not enough to outgun inflation.

Consistent performer

As interested as I am in finally buying a slice of Tritax, I know that running a diversified portfolio remains essential. That’s why my second pick to hold for a decade (or more) is a million miles away from real estate.

FTSE 250-listed drinks firm Britvic (LSE: BVIC) might not get the pulse racing but, thanks to owning a portfolio of brands that people habitually buy even in troubled times, it’s been a solid performer for dividend hunters for many years. In addition to money consistently hitting holders’ accounts, the payout has been hiked nearly every year (2020 was a rare exception).

Right now, Britvic shares offer a forecast dividend yield of just over 4%. Could I get a bigger yield elsewhere in the UK market? Of course! However, a general rule of thumb for me is that sky-high dividend stocks carry more risk of that passive income being cut. It’s often the case that the yield is large only because the share price has tumbled as a result of concerns about the business. In contrast, Britvic’s payout looks set to be safely covered twice by expected profit.

At a price-to-earnings ratio of 12, I’m considering adding this defensive dividend stock to my portfolio when I have the funds to do so.

Tritax

Even if consumer spending slows, I expect demand for warehousing to be fairly buoyant. That could be good news for warehouse specialist Tritax Big Box REIT (LSE: BBOX).

The shares have lost 36% of their value over the past year, meaning they now offer a dividend yield of 5.1%. A recession could lead to customers cutting budgets, which might be bad for Tritax. But the business seems to be in good health. In the first half, the contracted annual rent roll rose by 11% and the interim dividend grew 5%.

Tritax has a strong position in a sector I expect to see long-term structural growth. I would buy it for my portfolio today and hold it for the long term.

Games Workshop

One of the economic consequences of a recession can be that people spend less time and money on entertainment away from home, preferring the cheaper option of a night in.

That could be good news for Games Workshop (LSE: GAW). This FTSE 250 business makes money from roleplay games, both physically and online.

I think Games Workshop has a strong competitive advantage that could help it do well. It owns the Warhammer franchise, giving it pricing power and the benefit of a sizeable installed customer base.

I do see risks, such as the company’s concentration of manufacturing. If its main factory has a problem, that could hurt sales and profits.

But with its competitive advantage, 4.5% yield, and the prospect of robust demand, I would buy Games Workshop shares for my portfolio today and hold them during the recession.

City of London Investment Trust

Another of the FTSE 250 shares I would consider adding to my portfolio in a recession is the City of London Investment Trust (LSE: CTY).

Does it seem like a long time since England won the football World Cup? The year that happened (1966) saw the start of a run of annual dividend increases by the investment trust that remains unbroken.

At the moment, City of London has a dividend yield of 5.3%. Past performance is no guarantee of what will happen in future. But I like the trust’s focus on generating income for shareholders by investing mostly in UK companies, particularly large multinationals.

I think that makes sense, especially in a recession when large companies often have stronger experience and resources to ride out the storm than small ones. There is a currency risk to earnings due to a weaker pound hurting the sales prospects of many British exporters. That could reduce the value of some of the trust’s investments.

But I would tuck these shares in my portfolio and hold them through a recession and beyond.

These real estate investment trusts can give me access to a regular income from a broad mix of commercial and industrial property.

If I wanted to invest directly in such property, I’d need millions of pounds. Using REITs, I can get started with just a few hundred.

Here are the three REITs I’d buy to get started in property investing today.

#1 Landsec

FTSE 100 REIT Landsec (LSE: LAND) owns a mixed portfolio of top-quality London office space and large regional shopping centres and retail parks.

Landsec’s focus on quality has helped it to keep occupancy high, despite changing market conditions. Modern London offices in good locations are still in demand, as are leisure and retail sites at centres such as Bluewater and Westgate.

One possible risk is that a UK recession could reverse the recovery that’s been seen during the pandemic. Landsec could be forced to cut rents in order to keep occupancy high. That could put the stock’s 6% dividend yield at risk.

There are always risks, but in my view Landsec’s strong portfolio and low levels of debt mean that the outlook should be fairly safe. I’d be happy to buy this REIT stock as an income investment today.

#2 Primary Health Properties

My second pick, Primary Health Properties (LSE: PHP), owns more than 500 GP surgeries and local medical centres around the UK.

Healthcare property is known for its long leases, and PHP’s portfolio reflects this. The trust’s average remaining lease length is more than 11 years, while 89% of its rent is paid with government funding.

This should mean that PHP can provide very reliable cash flows for the foreseeable future. The main risk I can see is that rising interest rates mean that debt costs will rise. PHP’s interest costs are mostly fixed for the next eight years, providing some protection. But I think this is still a situation that’s worth watching.

PHP shares offer a forecast dividend yield of 4.8% and trade just above their book value. That’s not especially cheap, but with occupancy at 99.7%, I think the stability of this business is worth paying for.

#3 Tritax Big Box REIT

Warehouses have been a hot investment area in recent years. One of the bigger players in this sector in the UK is FTSE 250 firm Tritax Big Box REIT (LSE: BBOX).

Key tenants include Amazon, Morrisons, and B&Q. Tritax recently reported a 0% vacancy rate, with an average remaining lease length of nearly 13 years.

Soaring prices kept me away from warehouses during the pandemic, but I reckon valuations are now starting to look more reasonable.

A UK recession could hit Tritax as demand for new warehouse space might fall. But the company’s modern properties look relatively low risk to me. I’m also reassured by the REIT’s relatively low level of debt.

Tritax shares now trade at a 30% discount to their book value of 240p and offer a 4.2% dividend yield. I think this could be a good entry point for this stock.

Boxing clever

Soaring inflation is delivering a hammer blow to the UK economy. And things are looking grimmer and grimmer as economists increase their inflation forecasts.

I think investing in property stocks is a good idea to protect myself against this threat. Real estate businesses are usually able to raise rents to offset the impact of surging inflation on their cost bases. It’s why I’m considering buying more shares in Tritax Big Box REIT (LSE: BBOX).

I first bought Tritax to capitalise on growing e-commerce activity during the 2020s and beyond. The business operates a portfolio of warehouse and distribution assets across Britain. And its assets are let to global blue-chip companies like Amazon, Tesco, Ocado and Marks & Spencer. This gives me added confidence that rental income will remain stable during good times and bad.

In fact, internet giant Amazon is by far the company’s largest customer by contracted rent. In 2021, it accounted for 16.4% of total rental income.

A top REIT to buy

Construction of so-called big box storage and distribution assets continues to lag demand by a large distance. It’s a phenomenon that is expected to persist, even as e-commerce growth slows from Covid-19 levels too. So the market in which Tritax operates is tipped to keep growing strongly.

I also like REITs like this because they’re required to pay 90% of annual profits out to shareholders by way of dividends. It’s why the business sports a 4% dividend yield for 2022 and an 4.2% one for next year.

Sure, there are dividend shares with larger yields out there today. And Tritax could suffer some growth problems if it fails to identify suitable acquisitions.

But Tritax’s robust, inflation-resistant operations provides me as an investor with excellent peace of mind. All things considered, I think it’ll prove a top buy for long-term passive income.

6.4% dividend yield!

DS Smith (LSE: SMDS) is more likely to be impacted by the tough economic landscape than Tritax. This business manufactures packaging products that are used widely by e-retailers like Amazon. So trading is likely to suffer as consumer spending power falters.

However, I believe DS Smith’s cheap valuation reflects this risk. The FTSE 100 firm trades on a forward P/E ratio of 7.7 times following heavy share price weakness in 2022.

In fact, I’m thinking of buying more of its shares as a way to boost my passive income. Recent share price weakness leaves its dividend yields at a gigantic 6.1% and 6.4% for 2022 and 2023 respectively.

I believe DS Smith has a very bright long-term future. E-commerce has plenty more room for growth as the digital revolution continues. And I like the company’s commitment to growing its global footprint and improving its environmental credentials. Last year, it announced plans to double R&D spend to capitalise on soaring demand for more sustainable packaging.

Of course, Bezos does not pay rent to put a roof over his head; he pays rent to house billions of pounds’ worth of items ready to be trucked to doors around the UK at the click of a mouse.

Enter Tritax Big Box (LON:BBOX). This real estate investment trust (REIT) leases out storage space to Amazon, meaning shareholders collect a portion of the rent paid by Bezos and co.

A precipitous crash in Tritax Big Box’s price this year has made owning shares in the REIT appear even more attractive to me.

Big Box, big crash…big opportunity?

At the end of April, after Amazon’s first-quarter earning results showed rising costs for the e-commerce giant, investors dumped its stock, leading to more than a 30% fall in its price.

Tritax Big Box seems to have got caught up in that pessimism, with its stock price down by 25% over the same period.

But Amazon only makes up 17% of Tritax Big Box’s rental revenue, and for all the e-commerce giant’s woes, it is already locked into renting over six million square-feet of warehousing space (equivalent to 78 football pitches) from Tritax Big Box on leases that last for up to 20 years. There is no danger of this income evaporating overnight.

Meanwhile, Tritax Big Box’s other tenants are massive businesses (with two-thirds having an annual revenue over £10bn), focused in stable sectors like food retail (Co-Op, Ocado, Morrisons, Tesco), homewares and DIY (Howdens, B&Q) and post and parcels (Royal Mail), to name but a few.

With the High Street in terminal decline and work-from-home culture posing a threat to office rents, it is not an easy time to be a commercial real estate investor. On the other hand, warehousing for e-commerce is a booming sector benefiting from structural changes in the way people shop.

The price is right!

In 2021, when investors were still in the grips of ‘pandemic mania’, businesses with a link to working and shopping from home saw their share prices rally to dizzying heights, and Tritax Big Box was no exception, with its stock price reaching a 20% premium to book value.

Today, opportunistic investors can scoop up shares in the business at close to a 20% discount to book value – a considerable margin of safety!

As well as looking like a good play as a value investment for me, Tritax Big Box has ambitious growth plans, with 29 new sites on its radar, which – taken together – would more than double its existing portfolio if acquired. With a light debt load equal to just 33% of capital, and fixed interest rates and hedging arrangements covering all of its loans, I am not worried about the business being overleveraged or vulnerable to rising rates.

However, Tritax Big Box is not immune to inflationary pressures. CFO Frankie Whitehead noted in the 2021 annual report that ‘supply chain disruption’ and rising labour costs could begin to eat into the bottom line.

Despite the headwinds posed by soaring input costs for a brick-and-mortar business like Tritax Big Box, I’d be happy to buy shares at the current depressed price.

With net income up nearly 300% from 2017 to 2021 and high-calibre tenants like Bezos’ Amazon locked into 20-year leases, I am optimistic about Tritax Big Box’s long-term prospects.

Choppiness on the London Stock Exchange has pushed dividend yields at many UK shares through the roof. Should I buy these dividend-paying companies on account of their big yields?

Lloyds Banking Group

On paper, Lloyds Banking Group (LSE: LLOY) appears to be a highly attractive dividend stock. Its yield for 2022 clocks in at a handsome 5.7%. The predicted payout is also covered 2.7 times by anticipated earnings, well above the security benchmark of 2 times.

This FTSE 100 share however carries an unacceptable amount of risk, in my opinion. In recent days, Lloyds has said 30% of its customers sought debt services in the first half of 2022. That number could rise significantly too, in my opinion, as the cost-of-living crisis worsens.

Higher interest rates are helping boost Lloyds’ margins. Bank of England action has increased the difference that the bank charges borrowers and provides to savers. Still, I think the possibility of soaring bad-loan levels and slumping revenues at the bank more than offsets this benefit.

Lookers

Motor retailers like Lookers (LSE: LOOK) face near-term uncertainty as well as supply shortages hammer global car production. Latest data from the Society of Motor Manufacturers and Traders (SMMT) showed new car sales in the UK tanked 24.3% year-on-year in June due to disappointing vehicle output.

The ongoing war in Ukraine and resurgent Covid-19 rates in some regions means part shortages could continue to curb motor production too. Yet despite this risk, I’d still buy car dealership Lookers today.

I think profits here could soar as drivers swap out their petrol and diesel vehicles for ones that run on battery or hybrid power. Indeed, sales of these sorts of vehicles soared 56% and 26.3% respectively last month, according to the SMMT. That’s in spite of the growing cost-of-living crisis.

Lookers’ dividend yield sits at 4.1% right now. And its predicted dividend is covered 4.7 times by estimated earnings. I think it’s a top dip buy at current prices.

Tritax Big Box REIT

I’d also happily invest more of my cash in Tritax Big Box REIT (LSE: BBOX). I think this UK share is a perfect pick for dividend investors. Its designation as a real estate investment trust (REIT) obliges it to pay at least 90% of yearly profits to its shareholders by way of dividends.

This income stock operates a broad portfolio of large warehouses and distribution centres. It therefore has colossal potential as e-commerce continues to accelerate .

This week, DHL announced it would build and expand dozens of collection and delivery depots in the UK. The news perfectly illustrates the bright outlook for companies which help the online shopping sector function like Tritax Big Box.

The dividend yield here currently sits at 4%. I’d increase my holding even though its acquisition-led growth plan could throw up unexpected surprises. These include worse-than-expected tenant demand or high costs.

From a near-term perspective, this is hardly great news for UK-focused investors like me. However, I’m seeing it as an opportunity to buy high-quality stocks from the mid-tier that could grow my wealth once sentiment (inevitably) reverses.

Here are just two examples, one of which I already own.

Greggs

A 46% fall year-to-date for Greggs (LSE: GRG) leaves the shares languishing near their 52-week low.

This fall isn’t completely unsurprising. In May, the company reported higher costs relating to raw materials, energy and staff. It also suggested that consumer incomes will “clearly be under pressure” for the rest of 2022.

In addition to this, some investors may be grieving over the departure of much-admired CEO Roger Whiteside and/or unsure about his replacement, Roisin Currie. The recent train strike hardly helped trading given the number of Greggs sites near or in stations either.

But if there’s a stock that’s only temporarily unpopular, surely it’s this one? Greggs is loved by millions of commuters and shoppers. Once inflation begins to cool, I think we could see a strong recovery in the share price — just as we did when the UK government began easing lockdown restrictions.

The valuation is also pretty compelling. The tumble in 2022 leaves this FTSE 250 member trading at 15 times earnings. For a company that usually generates great returns on the money invested in it by management, that looks very reasonable to me. There’s a 3.5% dividend yield in the offing too.

As frustrating as it has been to see all my post-pandemic profit evaporate in recent months, I need to see this price tumble for what it is: a brilliant chance for me to top up!

Tritax Big Box

Another FTSE 250 constituent I’d be willing to buy today is Tritax Big Box (LSE: BBOX). Unlike Greggs, this is a stock I’ve coveted for what seems like a very long time but not actually snapped up. Unfortunately, the valuation just didn’t appeal. But things are changing.

Tritax shares have also fared worse than the index in 2022 so far — down 26%. This leaves them trading at 25 times earnings. Now, that’s far from cheap. However, at least some of this premium can be justified by its defensive properties.

The Real Estate Investment Trust (REIT) manages logistics assets like warehouses for some of the biggest retailers around. Think Tesco and Next. Based on the ongoing growth of online shopping, demand for what it does should only get stronger. That should mean the dividends keep flowing out to investors. Tritax currently yields 3.7%.

This company would also add some diversification to my portfolio by giving me exposure to a sector I’ve hitherto not had. This can help to lower the overall risk I’m taking. If another stock in an unrelated part of the market (such as Greggs) falls, Tritax may help to mitigate the damage.

This is not to say that Tritax shares won’t continue falling. Lower online sales at retailers could see investors throw out the baby with the bath water. So, perhaps drip-feeding my money into a position here might be psychologically easier (although not necessarily more profitable).

[Just beginning your investing journey? Check out our guide on how to start investing in the UK.]

Begbies Traynor Group 

What it does: Begbies Traynor provides financial services for companies in distress. The firm is a specialist in corporate insolvency. 

By Royston Wild. The outlook for the UK economy is getting gloomier as inflation accelerates. National output shrank in March, latest data shows, and recessionary risks are rising. It means that counter-cyclical share Begbies Traynor Group (LSE: BEG) could be a top stock for me to buy this June. 

A mix of economic deterioration and the withdrawal of government furlough support is driving corporate insolvencies through the roof. The cash crunch facing British business looks set to intensify, too, as lending conditions get tougher.  

A study from the Federation of Small Businesses shows that banks are “pulling up the drawbridge” to firms seeking capital. Indeed, just 19% of companies surveyed described the availability of credit as “good” in quarter one. This was the lowest figure since 2016. 

In this climate I think demand for Begbies Traynor’s financial services could soar. City analysts think the stock’s earnings will rise 10% in the 12 months to April 2023. I believe this estimate could be revised upwards as the fiscal year progresses. 

Royston Wild does not own shares in Begbies Traynor Group. 

XP Power

What it does: XP Power is a designer and manufacturer of power converters for the global electronics industry.

By Zaven Boyrazian. With Covid-19 creating plenty of disruptions for manufacturing businesses like XP Power (LSE:XPP), it’s not surprising to see the stock suffer by nearly 40% over the last 12 months. However, these issues are ultimately short term. Meanwhile, demand for the group’s products continues to climb, especially from semiconductor manufacturing companies.

Looking at the latest quarterly results, revenue grew by a meagre 8%, courtesy of the aforementioned disruptions. But the order book stands at a record £260m. And with a new manufacturing facility now under construction, the firm’s order capacity is set to expand considerably over the next few years.

In my opinion, this places XP Power in a favourable position to secure long-term growth. And that’s why, alongside the accolade of being my preferred stock for June, the recent tumble in share price looks like a great buying opportunity for my portfolio today.

Zaven Boyrazian does not own shares in XP Power.

Aviva

What it does: Aviva is a UK company offering a range of insurance and wealth management services

By Alan Oscroft: Aviva (LSE:AV) has been restructuring itself for several years, disposing of non-core businesses and cutting costs. As a result of that, it has had the cash to return a total of £4.75bn to shareholders, directly and via share buyback. The company now plans to pay progressive dividends yielding better than 7% this year and next.

Aviva is not out of the woods yet, after recording an earnings fall in 2021. The financial sector is also facing an uncertain outlook in today’s economic climate. But Q1 figures in May showed solid progress.

On balance, I think Aviva has all but turned the corner. But I don’t think the share price has caught up yet. Now Aviva has all but completed its capital return, investors can focus on future of the restructured company.

I’m hoping June could be the start of a renewed bull run. I’m holding, and might even buy more.

Alan Oscroft owns shares in Aviva.

Tritax Big Box REIT

What it does: Tritax Big Box REIT is a real estate investment trust that owns a portfolio of logistics warehouses.

By Edward Sheldon, CFA. Tritax Big Box REIT (LSE: BBOX) shares pulled back in late April (after e-commerce giant Amazon announced that it has a surplus of warehouse space) and I believe this has created a buying opportunity.

One reason I’m bullish here is that in the company’s recent first-quarter results, management advised that demand for new logistics space remains “very strong” and that the group is well-placed to capitalise on the high level of demand through its development pipeline. It added that it is handling inflation through active management of open market rent reviews, along with inflation-linked leases.

Another reason is that since the share price has fallen, eight company insiders, including the Chairman, have stepped up to buy stock. This indicates that those within the company expect the share price to rebound.

Now, BBOX does have a relatively high valuation. This adds some risk. If future results are disappointing, the stock could underperform.

Overall, however, I believe the long-term risk/reward proposition here is attractive enough to name the stock as my favourite for June.

Edward Sheldon owns shares in Tritax Big Box REIT and Amazon

Games Workshop

What it does: Games Workshop designs and manufactures miniatures and games. It sells these through various retail channels.

By Stephen Wright. Games Workshop (LSE: GAW) is a stock that I’d very much like to own in my portfolio. The company has a loyal and committed customer base, with good intellectual property rights protecting its business. It also has a balance sheet that instils confidence in me, having more cash than debt.

The company is in an interesting place at the moment. I think that high inflation and rising interest rates are likely to put pressure on businesses in this sector. But Games Workshop’s unique product should, in my view, see them through.

At the stock level, I’ll be looking to exploit any weakness in June to start building out a position. I think it’s important to be disciplined about overpaying, but I think there could be an opportunity here to acquire a great business at a reasonable price.

Stephen Wright does not own shares in Games Workshop

Abrdn

What it does: Abrdn is a global investment management company, managing a wide range of assets for its clients. 

By Michelle Freeman. It may seem counter-intuitive to pick Abrdn (LSE:ABDN) as my top stock for June. After all, its core business model is its fee-based investment offerings, opposite to the Motley Fool line of thinking. 

But you see, it’s not difficult to make money in a long bull market. However, a good strategy is priceless when it comes to navigating choppier investment waters. That’s why I think the recent run of doom and gloom news on investment markets will see a lot of retail investors willing to pay a little more for investment advice. 

With the share price remaining down over 25% year-to-date, I see plenty of long-term upside potential. That’s backed up by a majority of analysts holding buy targets above today’s price. 

And when you throw in that very tasty +7% dividend yield, it makes it a whole lot easier to stay the course through the ongoing market volatility.

Michelle Freeman does not own shares in Abrdn.

Associated British Foods 

What it does: ABF is the owner of retailer Primark and four food production businesses in grocery, sugar, ingredients and agriculture 

By G A Chester. Associated British Foods (LSE: ABF) is out of favour with the market. Indeed, you have to go back almost a decade to find the share price as low as its current level. 

Primark suffered during the pandemic, but the group remained profitable thanks to its food businesses enjoying strong demand. Primark has since recovered well, and food sales have continued to grow. 

However, like a lot of companies, ABF is now seeing significant inflationary pressures in raw materials, supply chains and energy. These costs will negatively impact the group’s profit margins. Notwithstanding the headwinds, management’s outlook for the year is for “significant progress in adjusted operating profit and adjusted earnings per share.” 

There’s a risk management’s expectations could prove over-optimistic, because the economic backdrop is so uncertain. Nevertheless, with the share price and valuation at multi-year lows, I think I’m looking at a rare opportunity to buy into a high-quality enterprise. 

G A Chester does not own shares in Associated British Foods 

Games Workshop

What it does: Games Workshop designs, manufactures, and sells fantasy miniatures and related products

By Paul Summers. Rather than move into cheaper but inferior value stocks at a time when investor interest in them might be peaking, I think the current market volatility offers me a wonderful opportunity to buy some of the UK’s best growth stocks at knock-down prices. One example is Games Workshop (LSE: GAW). 

As I type, shares are down over 30% year-to-date and almost 45% off their 52-week high. This brings the price-to-earnings ratio down to 18 – mightily attractive considering the high margins and massive returns on capital Games usually posts.

Sure, spending on hobbies will likely be reduced as the cost of living gallops higher. However, I reckon the sheer popularity of its products and loyalty of its customers means business should recover strongly once the clouds have passed. 

So long as I’m prepared for hold for more than a few months, building a position in this stock in June could prove lucrative.

Paul Summers does not own shares in Games Workshop

Associated British Foods

What it does: Associated British Foods is a highly diversified business. It is the owner of a number of leading brands including: Primark, Silver Spoon and Kingsmill. It also produces a number of food ingredients including sugar beet and flour.

By Andrew Mackie. Associated British Foods (LSE:ABF)’s share price is now trading at levels not seen since the stock market crash of March 2020. Here’s why it’s my top stock for June.

However, to my mind, the business is in a lot stronger position than during Covid. Yes, Primark has been forced to raise prices on a number of autumn items due to rising input costs. But all its stores are trading and revenue growth remains strong. Its no-frills brand will likely resonate well amongst increasingly cost-conscious consumers, particularly in the run up to the holiday season.

But ABF is a lot more than just Primark. The business continues to invest heavily in its grocery brands. Twinings, for example, recently enhanced its offering in the lucrative wellbeing teas market.

I am also excited about its agriculture division which produces animal feeds for pig, poultry and dairy. As food security becomes an increasingly important consideration, yield sustainability and environmentally-friendly practices will favour innovative businesses such as ABF.

Andrew Mackie owns shares in Associated British Foods.

JD Sports Fashion

What it does: JD Sports Fashion is a retail chain specialising in sports, fashion and outdoors brands, with a large digital commerce footprint.

By Christopher Ruane. The retailer JD Sports Fashion (LSE: JD) is known for low prices — but lately that has been true for the company’s shares as well as its shoes.

Over the past 12 months the JD Sports share price has tumbled 35%. But I think that fall is overdone and see a buying opportunity for my portfolio. The company expects to report its annual results in June. I reckon that could lead investors to reconsider the share price.

JD has said that headline profits before tax and exceptional items for last year are expected to come in at £940m. It thinks that 2023 will be at least as good, although a worldwide shortage of certain types of footwear is one risk to revenues and profits. With a market capitalisation of £6.2bn, I think the company looks cheap given its strong performance and attractive business outlook, making it my top stock for June.

Christopher Ruane owns shares in JD Sports.

Anglo American

What it does: Anglo American is a mining firm operating across the globe. It mines diamonds and platinum group metals (PGMs), together with copper, iron ore, and nickel.

By Andrew Woods. Anglo American (LSE:AAL) posted bumper pre-tax profits in 2021 of $17.6bn, up from $5.4bn the previous year. The company has recently been benefiting from historically high metal prices. These higher prices have been largely caused by the reopening of economies after the pandemic. Furthermore, the situation in Ukraine has heightened supply concerns and the overall trend of rising metal prices could be here to stay for a while yet.

The firm also recently signed a memorandum of understanding with EDF Renewables. This will develop solutions to make Anglo American’s South Africa operations run on 100% renewable energy. This is part of an effort by the business to make its mining operations more environmentally friendly.

While iron ore production declined for the first three months of 2022, the diversity of Anglo American’s business may continue to allow it to reap the benefits of surging demand for base metals, not to mention rising revenue from growing diamond sales in the US. 

Andrew Woods does not own shares in Anglo American

Computacenter

What it does: Computacenter supplies IT hardware and services to large corporate and public sector organisations.

By Roland Head. FTSE 250 group Computacenter (LSE: CCC) has a long history of steady growth. Sales have doubled to £6.7bn since 2012, while Computacenter’s annual profit has tripled to £185m over the same period.

Demand surged through the pandemic due to work-from-home and ecommerce demand. Although growth has eased in 2022, Computacenter management still expect to report “a year of further progress”. This tells me that another increase in annual profits is expected.

The main risk I can see is that an economic slowdown in 2022/23 could hit demand and cause Computacenter to miss a year or two of growth. However, I think the company’s share price already reflects a cautious view.

Computacenter is highly profitable and ended last year with net cash of £95m. The stock’s forecast price/earnings ratio of 15 times is at the lower end of its historical range. I think the shares look decent value at this level.

Roland Head does not own shares in Computacenter.

Burberry

What it does: Burberry is a British luxury fashion brand that design and distributes ready-to-wear items. These include trench coats, leather goods, footwear, fashion accessories, eyewear, fragrances, and cosmetics.

By John Choong. Having seen a 15% decline this year, the Burberry (LSE:BRBY) share price could be on the verge of a rebound this summer. As a luxury brand, many of Burberry’s goods hedge against inflation. This was evident in its latest earnings results, as its profitability hit an eight-year high. The company makes the bulk of its revenue from China, and it’s been capitalising on the uptake in luxury consumer spending within the region. In fact, the British firm opened a flagship store in Shanghai recently.

Although I expect the next trading update to post bitter numbers as a result of the recent lockdown in Shanghai, I remain optimistic for the FTSE 100 firm’s long-term prospects. I believe that sales figures will rebound along with its share price once restrictions come to an end, and that a sour trading update for Q1 could present a buying opportunity for the stock in June.

John Choong does not own shares in Burberry.

Warehouse operator Tritax’s share price has slumped below 200p for the first time since last summer. It’s down 20% in May as concerns over the impact of soaring inflation on its retail clients have grown.

I think the market has overreacted by selling so heavily, though. Tritax’s operations certainly are sensitive to broader economic conditions. But the business lets out its assets to some of the largest retailers, fast-moving consumer goods and delivery firms on the planet.

These sort of firms have the financial clout to see out tough times and to continue paying the rent. Tritax also ties its tenants down on extremely long contracts, which provides earnings with even better visibility.

Tritax Big Box’s clients include Amazon (NASDAQ:AMZN), Unilever, Tesco, DHL, and L’Oreal.

Non-negotiables

Besides, I would argue that interest in Tritax’s warehouse space should remain resilient even if the broader retail sector sinks. The rate at which e-commerce is growing means that companies can ill afford to scale back investment in warehousing and logistics.

As analyst Sophie Lund-Yates of Hargreaves Lansdown comments, “Despite inflation-linked doom and gloom hanging over many of Tritax’s retail customers, building out a strong logistics network is non-negotiable these days”.

Amazon talks, Tritax sinks

Tritax Big Box’s share price hasn’t simply ducked because of broader macroeconomic worries, though. Investors also sold out as Amazon announced it was going to cool warehouse capacity expansion. This is in response to slowing e-retail activity from the extraordinary levels seen at the height of the pandemic.

The words and actions of the world’s largest online retailer naturally command much attention. However, I think the market might be overestimating Amazon’s changing strategy on Tritax Big Box.

This is because — irrespective of Amazons own actions — demand for space in the UK is likely to continue growing ahead of supply for years to come, pushing rents at Tritax relentlessly higher.

Expanding for growth

Britain is by far Europe’s largest e-commerce market. And online revenues are tipped to reach $285.6bn by 2025. That’s compared with below $200m today.

Tritax Big Box is committed to aggressive expansion to make the most of this opportunity too. The FTSE 250 firm plans to begin development on between 3m and 4m square feet of warehouse space in 2022 alone.

Tritax’s expansion programme does create dangers to shareholder returns. Such large investments can impact dividend levels in the near term. They can open up other dangers, too. For example a poor choice of location could leave the company saddled with a property it might struggle to fill.

That said, Tritax’s strong track record on this front provides me with a lot of confidence. Indeed, I think its commitment to expansion in a fast-growing sector could make the business (which yields a healthy 3.5% for 2022) a great passive income stock in my portfolio for years to come.